Money & Career

HRA Exemption Estimator

Rough HRA exemption when renting. Useful for students and job seekers reading offer annexures — not a CA filing tool.

Results

Rent − 10% of basic —

40%/50% of basic —

Est. HRA exemption —

Est. taxable HRA —

How it works

HRA exemption only applies when you pay rent and claim under rules that use the old-regime style calculation. Confirm with payroll or a tax professional — metro lists and proofs matter.

Formula

Exemption ≈ least of: (1) actual HRA, (2) rent paid − 10% of basic, (3) 50% of basic (metro) or 40% (non-metro).

Examples

Non-metro renter

Basic ₹2.4L, HRA ₹1.2L, rent ₹1.8L → exemption is limited by the least of the three rules; taxable HRA is HRA minus that exemption.

FAQs

Does new tax regime allow HRA?

Typically HRA exemption is an old-regime benefit. This tool is for learning the classic three-rule math.

Is metro detection automatic?

No — choose metro vs non-metro yourself based on your city classification.

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